Variable tracker rate of BBR + 3.14% until 31/07/2012 then reverting to the lender's standard variable rate which is currently 4.99% for the remainder of the term. This product is available up to 60% LTV and the rental calculation is 125% at payrate. An application fee will apply.

3.5%

4% of original balance being repaid until 31/07/2012

3.89% Tracker

5.3% APR

60%

Variable tracker rate of BBR + 3.39% until 30/09/2012 then reverting to the lender's standard variable rate which is currently 4.99% for the remainder of the term. Product switch available to any fixed rate during the term. This product is available up to 60% LTV and the rental calculation is 125% at a notional rate of 4.99%. An application fee will apply.

3.5% (min £595)

3% of amount being repaid until 30/09/2012

3.99% Fixed

5.3% APR

60%

Fixed rate of 3.99% until 30/09/2011 then reverting to the lender's standard variable rate which is currently 4.99% for the remainder of the term. This product is available up to 60% LTV and there is a rental calculation of 125% at a notional rate of 4.99%. An application fee will apply.

2.5% (min £595)

5% of amount being repaid until 30/09/2011

4.14% Tracker

5.4% APR

70%

Variable tracker rate of BBR + 3.64% until 30/09/2012 then reverting to the lender's standard variable rate which is currently 4.99% for the remainder of the time. This product is available up to 70% LTV and there is a rental calculation of 125% at a notional rate of 4.99%. An application fee will apply.

3.5% (min £595)

3% of amount being repaid until 30/09/2012

4.35% Tracker

5.1% APR

75%

Variable tracker rate of BBR + 3.85% for 1 year then reverting to a variable rate of BBR + 4.19% to give a current rate of 4.69% for the remainder of the term. This product is available up to 75% LTV and the rental calculation is 125% at payrate. An application fee will apply.

3%

3% of amount being repaid for 1 year

4.75% Fixed

5% APR

60%

Fixed rate currently of 4.75% until 30/06/2012 then reverting to the lender's standard variable rate which is currently 4.74% for the remainder of the term. There is a free valuation up to £680 for purchases and remortgages and free legals or £200 contribution for remortgages only. This product is available up to 60% LTV and the rental calculation is 125% at payrate. There is a £250 booking fee and an application fee will apply.

£999

4% of amount being repaid until 30/06/2012

4.94% Tracker

4.6% APR

70%

Limited company product. Variable tracker rate of BBR + 3.84% until 30/09/2011 then reverting to a variable rate of BBR + 3.49% to give a current rate of 3.99% for the remainder of the term. This product is available up to 70% LTV and the rental calculation is 125% at a notional rate of 4.99%. An application fee will apply.

3.5% (min £595)

3% of amount being repaid until 30/09/2011

4.99% Fixed

4.8% APR

70%

4.99% fixed until 31/08/2012 then reverting to the lender's standard variable rate which is currently 4.59% for the remainder of the term. This product is available up to 70% LTV and the rental calculation is 125% at the payrate. Free valuation & standard legal fees for remortgages. For loans between £100,000 and £500,000. An application fee will apply.

£1499

3% of amount being repaid until 31/08/2011, 2% of amount being repaid until 31/08/2012

4.99% Fixed

5.4% APR

80%

Fixed rate of 4.99% until 30/09/2011 then reverting to the lender's standard variable rate which is currently 4.99% for the remainder of the time. This product is available up to 80% LTV and there is a rental calculation of 125% at payrate. An application fee will apply.

2.5% (min £595)

5% of amount being repaid until 30/09/2011

5.89% Fixed

5.4% APR

65%

5.89% fixed rate until 31/10/2012 then reverting to a variable rate of BBR + 4.50% to give a current rate of 5.00% for the remainder of the term. This product is available up to 65% LTV and there is a rental calculation of 125% at 5.00%. An application fee will apply.

£1495

5% of the amount being repaid until 31/10/2012

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice.Please check our website regularly to see the most up-to-date products available.

Please visit http://www.propertyhawk.co.uk/ and click on Mortgages to search the full product range and find a buy-to-let mortgage to suit your specific personal circumstances.

Latest figures indicate a stalling housing market with both house prices and mortgage approvals falling in May.

The Bank of England released figures showing that mortgage approvals fell in May.

According to the Bank, mortgage approvals for the month stood at 49,815, a fraction below the 49,828 in April and below analysts forecasts of 51,000.

The figure is also well below the 60,000 reached in November 2009 furthermore, they are 50% below levels experienced in 2006.

At the same time house prices according to the most comprehensive figures released by the Land Registry showed the average house declined 0.2% in May compared to April. After the recovery last year prices are still up 8.2% on a year ago, with London prices experiencing the largest recouvery rebounding 14.2% on the year.

However, with the effects of the austerity budget just around the corner landlords should be looking a getting a good deal before committing to a purchase.

In my view in the current climate if I couldn't get at least a 10% reduction on the asking price, I'd just walk away. There is plenty of property out there and a landlord should ensure that they don't start off their residential investment by over paying.

Property Hawk sticks to our original forecast for the housing market made back in 2008.

The latest contact from my new tenant is a text informing me that the block of flats in which my 'luxury pad' is located has only 1 wheelie bin between 5 flats - not a good ratio given they should have one each.

It appears that the phantom wheelie bin thief of old Nottingham town has been up to his old tricks.

So given that the Council informs me that it is going to cost £10 to order a new wheelie bin who should pay for this?

If I refuse to provide another bin am I in breach of my obligations as set out in the Tenancy Agreement? Not that I'm aware of is my answer but other landlords may know differently.

So if I bite the bullet and come up with the cash for the sake of good sanitation and then the bin goes missing. Should I have to pay to replace it again or is it the tenants responsibility?

Am I making sense or just talking rubbish?

Landlords experiences of their own wheelie bin dilemmas would be appreciated.

Tuesday, June 29, 2010

With a heavy heart, Property Sparrow has taken down her World Cup Wall Chart from the kitchen wall.

There's a replacement wall chart here. It tells you about all of the Government Ministers as at 3 June 2010. I suppose it may be useful to keep track of who's who in the Cabinet and in the Department for Communities and Local Government.

A recent case involving a gay tenant highlights the obligations on landlords to treat all their tenants with respect.

The case involved a Belfast tenant who alleged his landlord had discriminated against him because of his sexual orientation. The tenant eventually accepted a settlement of £3,500 after taking his case to the Equality Commission.

The full details of the case are contained in this article but it does highlight the need for landlords to act professionally when dealing with their tenants.

Landlords who are reeling from the caps on Local Housing Allowance (LHA) levels proposed by the emergency budget have another 'bombshell' to cope with.

Hidden in the small print of the budget details is an even more worrying proposal for landlords letting to tenants on benefit. This change will not only impact on landlords letting in high value areas but will affect every landlord letting to a tenant on benefit. This is because they government are proposing a significant reduction in the general level of LHA benefit by changing the way the benefit is being calculated.

Previously LHA payments were calculated by taking the median level of rent in a Broad Rental Market Area (BRMA). From October 2011 rents will be set at the 30 percentile level of local rents. This may not sound like a dramatic change but the way it works in simple terms is this.

Imagine for example calculating the rent for a 1 bed flat. A list of a hundred rents would be compiled ranked in order with the lowest rent being ranked no.1 and highest numbered 100 for a defined local area. The VOA who calculate the LHA currently use the BRMA. Under the current system the VOA when calculating the median would use the rent which comes in the middle or in this case 50th in the list to come to a figure for the benefit level to be paid to a landlord. However, under the new system to be introduced from October 2011 they will use the 30th rent on the list.

This may not sound that dramatic, but where there is a large disparity in rents in a local area it could lead to a significant reduction in the LHA paid to the tenant and therefore received by a landlord letting to a tenant on benefits.

Here's a useful chart providing indicative figures showing how the planned changes announced by the Chancellor of the Exchequer on 22 June could affect Local Housing Allowance rates.

Monday, June 28, 2010

Whether submitting evidence to your deposit protection scheme ADR department or communicating an everyday agreement with your tenant, you should always ensure that you can prove not only that the message was sent, but also the its contents.

I advise my clients to use an email system that is set to record both incoming and outgoing mail to communicate with their tenants. This doesn’t mean that can’t make agreements with your tenants over a cup of tea, but once you get back to your computer, send the tenant an email saying “further to our conversation today, this is to confirm” etc. That way, everyone has a permanent record of any agreement relating to the tenancy. The existence of clear, unequivocal evidence is the best way to avoid disputes occurring in the first place.

Many deposit disputes fail for a basic lack of evidence and landlords often complain that evidence sent in was not taken into account. The schemes are pretty good at devising systems to prevent evidence being lost but, occasionally, mistakes may be made. Equally, the post office has been known to lose mail. If you have a record of delivery backed up by signatures, tracking codes or, best of all, a digital record of the contents of your mail, you are much more likely to be able to recover your loss, either against the scheme or the delivery company. If there is no proof of sending, or of what was sent, your pleas are likely to fall on deaf ears. After all, even landlords make mistakes sometimes.

Tom Derrett is the Principal of Deposit Claim and an expert on the Deposit Protection Schemes.

Tom is an experienced deposit protection adjudicator who was unhappy at having to decide a disproportionate number of cases against landlords when he felt that they could often have won if they had presented their case properly.
In a twist on the poacher turned gamekeeper scenario, Tom set up ADR Solution, a deposit protection consultancy, to provide landlords with the advice and support necessary to win deposit disputes, at an affordable cost.

There are a number of issues including whether a landlord is letting their property in a rising rental market or where a landlord expects rents to be stable or even fall.

Frequently tenants push for a longer term than the standard minimum 6 month Assured Shorthold Tenancy so they have greater security of tenure. However, a landlord may want to consider giving a new tenant an initial 6 month tenancy to first assess the tenants suitability.

If they are happy with the tenant then grant the tenant a longer term fixed term Assured Shorthold Tenancy.

For more details about how long a landlord should grant an Assured Shorthold Tenancy for have a look at the Landlords Bible.

The latest quarterly Landlord Survey compiled by BDRC Continental shows that rental arrears are at there highest ever level since the study began in 2006.

The study shows the inexorable rise of rental arrears continues with 34% of landlords being affected in the last 12 months, the highest proportion ever recorded in the survey.

Mark Long Director at BDRC Continental says “Although there are indicators in this quarter’s research that suggest the private rental market is stabilizing, it is too early to refer to this as a ‘recovery’. Britain’s private landlords still have to cope with uncertain economic conditions and arrears are at the highest level since the research began in 2006.

These figures coincide with the release of other statistics showing that landlords filed 23 per cent more repossession claims against tenants during the credit crunch.

Legal claims to evict tenants increased from around 17,000 in 2004 to over 21,000 in 2008, according to legal publisher Sweet & Maxwell.

Both figures indicate that despite a relatively buoyant rental market landlords need to thoroughly reference their tenant and be proactive in managing non paying tenants.

Sunday, June 27, 2010

One of the regular questions asked by both landlord and tenant is who is responsible for the repair of the buy-to-let property?

The starting point is the tenancy agreement however there are other issues that a landlord needs to be aware of as some of the terms of the tenancy are implied terms which can overide the express terms contained within any tenancy agreement.

Have a look at this section of the Landlords Bible about the responsibilities for repair and maintenance of a landlord.

Saturday, June 26, 2010

The latest quarterly research of over 500 landlords conducted by BDRC Continental reveals that optimism amongst landlords continues to recover with more than a half of respondents (57%) considering their business prospects for the next three months as good.

Inevitably this optimism comes in part as improved profitability for portfolio landlords see rental levels at record highs as interest rates remain on the floor.

Over three quarters or 79% of all landlords say they are making profits up from 73 % in the third quarter of 2009. Almost a third of landlords (32%) claim to be making enough profit to save money and this figures reaches 48% of professional landlords, those with 20 properties or more.

Added to this good news for revenues landlords were treated to a capital gains system which was much kinder than many landlords had feared.

The latest quarterly survey of landlords intentions showing that after a 'wait and see' approach there is an increased proportion of landlords in the 2nd quarter of 2010 looking at expanding their residential investment portfolio.

The survey of 500 landlords carried out by BDRC international reveals that 23% of landlords are now expecting to expand their residential portfolio in the next 3 months compared to only 19% in Q4 09. This figure rises to 45% or almost half of all professional landlords (those who consider it to be their main occupation).

One of the significant reasons behind the more expansionary outlook is improvements in the buy-to-let mortgage market. The survey revealed that the percentage of landlord who were having difficulty in obtaining mortgage finance reduced from 51% of landlord in January 2009 to 44% in Q2 2010.

Consequently 21% of all landlords and 41% of professional landlords are likely to seek further mortgage finance in the next three months.

Just days after the Coalition scrapped the Labour Party's plans to regulate the private rental sector an early day motion by Labour MP Andrew Love proposes that the private rental sector be fully regulated.

More than 25 MPs so far have signed the Early Day Motion; these include Labour MPs Glenda Jackson & Dennis Skinner.

This move highlights the huge divide in thinking between the approach of the two main political parties in respect of the private rental sector. The Tories clearly believe in a light touch approach. Witness the recent moves by Grant Shapps the Housing Minister to quickly remove controls on landlords. Property Hawk and I believe the Tories believe that ultimately it is for the tenant and landlord to make a business decision as to whether they enter into a contractual relationship of tenant and landlord; subject to the law that control the letting of property.

The Labour Party instead believe that landlords cannot be trusted and need some kind of control or regulation in order for the state to ensure that only 'good' landlords can let property.

This approach is consistent with both parties historic approach to the private rental sector. The Labour party was responsible for bringing in a series of rent controls and other regulation on security of tenure which practically killed off the private rental sector by the early nineteen eighties. It was only at the instigation of the Conservative Party led by Margret Thatcher that these controls were removed and replaced by the Assured Shorthold Tenancy created by a new Housing Act 1988.

It also highlights the fact that the two main parties are NOT 'all the same' and that there is a huge ideological gulf in approach to the private rental sector.

The Early Day Motion reads: “That this House notes with concern the Government’s decision to abandon plans for a national register of landlords and further regulation of the private rented sector; recognises that the private rented sector plays a significant role in supporting the housing market in the UK; believes that rogue landlords and letting agents continue to pose a threat to consumers in the private rented sector; further notes the statistic from the Office of Fair Trading that the number of complaints against rogue landlords and letting agents is on the rise; and calls on the Government to bring forward proposals immediately to create a national register of landlords and to propose further regulation of landlords and letting agents in the private rented sector.”

Andy Young, Chief Executive Officer at Landlord Centre says ‘There has been speculation about the how the rise in Capital Gains Tax (CGT), announced in the coalition government’s emergency budget on 22nd June, will affect the buy-to-let market. Although perhaps disappointing, the rise from 18% to 28% for high-rate tax payers will not come as a surprise to most landlords. However CGT is still much lower than some had predicted and it remains at 18% for low and middle earners. The new rate came into effect immediately so there will not be a sudden rush of landlords exiting the market to avoid paying it.

‘Although the hike in CGT will be a disappointment to wealthier buy-to-let investors it is unlikely to have any significant detrimental effect on the buy-to-let market overall. The fact remains that most residential property investors are in the market for the medium to long term and they seek returns through rental yields as well as capital gains.

‘The group most likely to be put-off by the new CGT regime is short-term property speculators who are looking to cash in on the house price index. Most of these, however, have already exited the market. Professional landlords are unlikely to be deterred from maintaining and expanding their portfolios as buy-to-let property is still generating good income and remains a viable medium to long term investment offering competitive returns.’Free BTL Mortgage Search Tool

After the relief of many landlords in the emergency budget that landlords were not going to be hit by a Capital Gains Tax bombshell. Sifting through the less headline grabbing announcements; it is clear that one group of landlords will be hit hard by the proposed budget changes.

This is landlords letting high rental value properties under the Local Housing Allowance.Boy George's announcement that he was capping payments at £280 per week for a 1 bed flat to £400 for a 4 bed house will have a big impact on landlords letting to tenants on benefit in the more expensive parts of London. The latest figures from the Valuation Office (VOA) show that the rent available to a landlord letting in Kensington & Chelsea is £350 per week. Therefore, the cap will have a massive impact on landlords letting in these areas.

Property Hawk has always been critical of the way that the LHA introduced changes to the way that payments were made taking away the option for private landlords to receive rental payments directly from the Local Authority. However, the fact is that many savvy landlords were making a 'good living' out of using the certainty and 'generosity' of the LHA rent system.

London landlords in high value areas letting to tenants on benefit look to be the big landlord losers in the budget. However, with rental demand in the city high, these landlords I'm sure will have no problem filling their rental properties. They just wont have the security of the state standing behind the rental payments any more!

Three weeks on from the suspension of Home Information Packs,a government move which according to some sources will cost 10,000 jobs and £100 million in lost VAT revenue, the property world now regards HIPs; THANK GOODNESS; as an ill-conceived memory.

The fact is that despite HIPs biting the dust a landlord who markets their property for sale or rent still needs an EPC.

Many landlords have been holding off getting an EPC perhaps thinking that the EPC will go the same way as other unwanted landlord legislation such as the proposed landlord licence or HMO planning controls.

The answer is it wont. Chris Grant of EPC Choice highlights the difference between the EPCs and other pieces of landlord legislation in simple terms.

"EPCs have come straight from the legislative books of Brussels and are a European directive. This means that unlike the landlord licence the new Coalition can't scrap them even if they wanted to."

The reality is that landlords are saddled with the need to get an EPC which once purchased stays in force for 10 years. Failure to get an EPC could lead to a fine of £200 from a trading standards officer.

"If you have obtained an EPC, the document may be worth more than the cursory glance often given to other certificates. The EPC will in the near future open the door to government funds towards a huge array of eco friendly improvements to Landlords property. The governments Green Deal will see property owners awarded grants of £6500 repayable over 20 years from the savings made on fuel bills."

With the Coalition flexing their green credentials there may still be an upside to the EPC even if for now they appear to be just another box ticking exercise for landlords to go through.

Tuesday, June 22, 2010

Capital Gains Tax is to stay at 18% for landlords paying income tax at the basic rate. The Chancellor however in his speech at lunch time today announced that from midnight tonight top rate tax payers will have to pay CGT at the revised rate of 28%.

Many commentators were predicting that CGT for landlords could rise to 40 or even 50%. However, it looks like the Treasuries tactic of preparing landlords for an apocalyptic scenario has worked. Most landlords will now be muttering an audible phew!

More details on how the Emergency Budget will effect landlords to follow.

"If we look at the biggest boom in residential investment during the late nineties and the 'noughties' this occurred at a time when CGT was at potentially 40 or 50 %"

"Admittedly, this tax regime was accompanied by a system of indexation which reduced the amount of CGT payable the longer a landlord held their property for."

"Investing in residential investment should be considered a long-term investment & not just about investing to make a huge capital profit. It is as much about securing a long-term income stream & clearly any reduction in income tax will reduce the tax paid by a landlord on any rental profits."

Monday, June 21, 2010

Verbal agreements are notoriously difficult to prove, and reliance on them is asking for trouble. You may have a touching sob story about why you trusted the tenant, but how nice they seemed or how well you knew their aunt is unlikely to influence the outcome of your dispute. Renting out a property is a business transaction and should be treated with the appropriate formality regardless of who the tenant is.

If you have made a verbal agreement with your tenant and you find it is the subject of a deposit dispute, all is not lost. A compelling argument can be pieced together from emails, phone bills and other fragments of evidence, which can be used to show that a particular agreement was reached. Adjudicators employ the civil standard of proof and determine cases in the balance of probabilities. They are looking for evidence to show which version of events is the more likely. It doesn’t necessarily take a great deal of properly presented circumstantial evidence to outweigh a bare denial on the part of the tenant.

The same is also true if the tenant claims you made a verbal agreement which you deny. With the truth on your side, a bit of detective work can usually create a solid case. If you are the type of landlord who never makes verbal agreements, then a little evidence of your usual business practices may also be persuasive.

Tom Derrett is the Principal of Deposit Claim and an expert on the Tenancy Deposit Scheme.

Tom is an experienced deposit protection adjudicator who was unhappy at having to decide a disproportionate number of cases against landlords when he felt that they could often have won if they had presented their case properly.
In a twist on the poacher turned gamekeeper scenario, Tom set up ADR Solution, a deposit protection consultancy, to provide landlords with the advice and support necessary to win deposit disputes, at an affordable cost.

A hit squad has been formed to route out unscrupulous slum landlords in Glasgow.

The 'A - team' will be funded for 2 years by a £300,000 grant.

Made up of council staff, police and fire officers, the aim of the pilot scheme is to clear the Govanhill area of Glasgow of the slum landlords that are perceived to be exploiting the influx of immigrants that have swelled the areas population from 10,000 to 16,000 in the last six years.

The team will look to gather information from the local community to find the location of slum properties that might be breaching laws or regulations.

The latest figures from the LSL Property Services suggest that buy-to-let yields may be rising as rents rise faster than house prices.

Property rents according to their figures have risen for four successive months and are now 2.7 per cent higher than May 2009 at £667pcm.

The house price of the average rental property picked up 0.1 per cent compared with April 2010 and 8.6 per cent year on year.Rental yields are an important measure for landlords and property investors as they measure the underlying relationship between the capital value of a residential investment and the amount of cash in terms of rent that the investment generates.